Wait—forget about increasing employee engagement? And building workplace culture? That sounds more than a bit crazy.
Well…”forget” may be too strong a word. Of course, business leaders want to improve employee engagement and build a culture of high performance. However, recent research suggests that to improve productivity and profitability, those may not be the most fruitful areas to focus on.
Here’s a look at what three industry experts say companies should focus on instead, along with what leaders can do to tie this all together.
Well-Being is More Important Than Engagement
In his Fast Company article, Leaders don’t really care about employee engagement – here’s why, workplace management expert Mark C. Crowley wrote:
“Research suggests that employee well-being matters more to the success of a business than employee engagement. For instance, Oxford University researchers have determined that how people feel at work is the biggest driver of employee productivity.
“Consequently, focusing on improving employee well-being will lead to a massive win for employers and employees alike. Here’s why leaders should start prioritizing worker well-being instead of harping on employee engagement.”
The Gallup organization’s big 2013 “State of the American Workplace” study found “that only 30% of American workers were fully engaged in their jobs.”
Corporate leaders “were alarmed,” noted Crowly. “Gallup’s findings meant that only 3-in-10 people were willing to invest discretionary effort to help their organizations succeed…Given how bleak a report card this was for workplaces, one might imagine that major initiatives were launched and engagement scores have since improved.”
Unfortunately, that hasn’t happened. Employee engagement remains today exactly where it was in 2013: just 30%.
Why Didn’t Engagement Improve?
To summarize the responses Crowley received when he asked business leaders this question:
- Investors typically don’t hold CEOs accountable for increasing employee engagement as long as the company is performing well financially;
- Employees were generally surveyed only twice yearly and the results took months to report;
- Managers’ compensation was never tied to increasing engagement; and
- Consequently, workers looked at the whole process as a joke.
As Crowley concluded, “Ironically, this perceived indifference led people to become even less engaged in their jobs.”
Why Employee Well-Being is More Important for Organizational Performance
In looking more deeply into these issues, Crowley discovered research studies showing that:
- 77% of U.S. professionals have experienced burnout at work;
- 91% report having an “unmanageable amount of stress and exhaustion,” which negatively impacts their work quality;
- 20% of American workers have daily thoughts about quitting their jobs;
- Managers are too focused on meeting (short-term financial and performance) targets to address the emotional and psychological needs of their people; and
- One result is a 74% surge in workers asking for leave or accommodations for mental health-related issues.
Burnout, stress, and turnover have real costs. But if managers aren’t held accountable for those costs, they’ll ignore them in pursuit of performance goals.
Looking at the world’s largest study of employee well-being, conducted by Oxford University, Crowley summarized:
“What drives employee well-being principally boils down to…how people are managed. Do people feel they have opportunities to learn? Is there diversity and inclusion in the workplace? Are workers paid fairly? Is there trust in the organization?…
“The greatest driver of employee well-being is belonging…a sense that one’s organization, manager, and colleagues care about them personally. Meeting worker’s social needs for friendship, connection, and feeling appreciated is what truly elevates well-being.”
Well-Being Directly Impacts Productivity
Leaders who care about performance should care about well-being as well, more so than engagement. Crowley concludes with three key findings from separate studies:
- Productivity is directly related to how employees feel that week;
- “Traditional financial impacts like return on assets, profits, and a firm’s value also have a direct and positive correlation to employee well-being”; and
- Investing in worker well-being ultimately improves both retention and productivity.
“There are many ways workplace managers can actively help elevate employee well-being,” writes Crowley. “But their first step should be simply asking people how they can help them flourish at work. This one question is likely to identify many meaningful solutions.”
Community is More Important Than Culture
Wait, isn’t corporate culture pretty important? After all, research from Harvard, Forbes, and other sources has found that “people working in companies that have a positive corporate culture are healthier, happier, more productive, and less likely to leave…(and) that companies with positive workplace cultures have higher average annual returns.”
In another Fast Company article, Why leaders shouldn’t focus on creating a corporate culture—and what they should build instead, emotional intelligence expert, author, and speaker Harvey Deutschendorf acknowledges all of that, but contends “while workplace culture is important, it does not ensure that the diverse needs of its members are taken into account.”
He believes corporate culture can “increase fiscal outcomes” in the short term at the expense of long-term organizational (and employee) health. His advice regarding what leaders should concentrate on rather than culture?
“Instead of trying to intentionally architect a particular corporate culture…leaders should focus on building a sense of community. Building a community takes a much broader, long-term perspective, looking to ensure that its members feel safe, have a sense of belonging, and have the opportunity to develop deeper connections with the people they spend so much of their lives with.”
He proceeds to cite research showing:
- 69% of employees are unsatisfied with their connections at work;
- 43% say they don’t feel a sense of connection in their workplaces; and
- one in five employees worldwide say that they felt lonely the previous day. (We’ve written previously about the impact of and ways to combat the epidemic of loneliness at work.)
Deutschendorf also identifies several ways in which building a strong workplace community benefits organizations. Among his key points:
Community Boosts Mental Health and Wellness: “Mental health and wellness are largely dependent upon having a strong sense of community and support system that comes with it.” These are key attributes of employee well-being, which as noted above, is arguably more important than engagement.
Community Results in Less Turnover: “One of the major struggles that organizations face is keeping good people,” a challenge even more critical in a tight and competitive labor market. As Deutschendorf explains, “A strong sense of community creates emotional bonds that are difficult to recreate and may not exist elsewhere, causing people to want to stay where they are.”
Community Builds Strength in Diversity and Inclusion: Diversity in the workplace [LINK back to our Diversity blog post] provides a number of valuable benefits to organizations, from improving innovation and decision-making to increasing employee retention and market reach. But it’s difficult to build and maintain without commitment.
As Deutschendorf observes, “Knowing that an organization has a welcoming and supportive atmosphere will draw more diversity and talent into any organization. This creates a win-win for both the health of the organization and the individuals working in it.”
His article concludes, “Culture affects change. Community drives it…As leaders, we can build…real community…capable of consistently exceeding financial goals.”
How Team Building Supports Well-Being and Happiness
Even in organizations with a commitment to employee well-being and happiness, it can be easy to lose sight of these larger goals in the day-to-day focus on the work tasks at hand. Taking a step back periodically, a break from the daily routine to build relationships and collaboration, can have huge positive impacts on psychological health.
Team building activities not only provide a worthwhile break from day-to-day work, they also demonstrate a commitment to helping employees build their people skills and other professional capabilities, all while having fun! Team building supports these goals in a variety of ways.
Fun competition and bonding programs like Bridge to the Future, Momentum, and Pipeline help foster cross-functional collaboration and a sense of community as individual teams build their own sections of larger structure while coordinating with other teams to make sure all of the individual components fit together to accomplish the overall goal in the end.
Murder mystery challenges and escape rooms, such as Crack the Case!® and our Virtual Treasure Hunt Trilogy, enhance team problem-solving skills in a fun, immersive environment.
High-tech corporate scavenger hunts like our Amazing Chase SmartHunt® and City SmartHunt®, provide distinct roles for different team members as the group works together to solve challenges, maximize points, and manage their time effectively. Getting outdoors and exploring new surroundings contribute positively to physical and psychological well-being.
Finally, charitable corporate social responsibility (CSR) programs combine the core benefits of team building with an impactful sense of purpose in giving back to the community. Programs like Autism Awareness Sensory Donation, Cancer Comfort Care Packs, and Bike Build Donation® powerfully promote employee happiness and well-being as they work together to support a worthy cause.
Happiness is Important, and It’s Driven by Trust
In yet another piece from Fast Company, entrepreneur and speaker Jade Green reported on research findings that happier workers:
- Are 12% more productive than their unhappy counterparts (due to factors such as increased motivation, engagement, and creativity);
- Tend to make fewer mistakes; and
- Are more focused and able to complete tasks more accurately.
Unhappy employees, on the other hand, are more likely suffer long-term health effects. Happiness, among its other benefits, is strongly correlated with well-being, which (once more) as noted above is arguably more important than engagement.
In their article There’s a happiness gap at work. Here’s what we learned from leaders in Finland and Denmark, the happiest countries in the world; authors Tiffany Danko and Susan Vroman emphasize that:
“Trust is an essential element that contributes to happiness…(and) is perhaps the most vital form of capital leaders have today…Teams expect leaders to act with expertise and alignment with an organization’s values. This builds trust that leaders are acting with both competence and character. When there is mutual trust in organizations, there is a positive impact on the bottom line.
“However, without trust, there is no leadership…In a recent survey, 61% of workers doubt that business leaders are telling the truth, indicating significant challenges for worker happiness and productivity. With this lack of trust, we have to question whether workers can put forth their best efforts, generate quality deliverables, or care about the bottom line.”
So—trust drives happiness, which increases productivity, creativity, and accuracy. How can leaders reverse the decline in employee trust and take positive steps to increase it? The authors recommend three powerful approaches.
Practice Transparency
In short, do what you say you will do, for the reasons you say you will do it. And do that consistently.
The article contrasts the traditionally high levels of trust, and correspondingly high levels of happiness, across the Nordic countries with the decline of both in the U.S., as across “the court system to banks, tech companies, and media, less than one-third of the U.S. feels they can trust the leading institutions in the country. Years of scandals, bail-outs, and contentious, divisive political campaigns are part of the problem…
“(And yet) from school curriculums to wage legislation to U.S. military services, there is an increased emphasis on trust and transparency. And leaders are finding great value in transparency in other elements of business management, including reporting, information, and decision-making.
“An appropriate level of transparency varies widely by culture, role, and the framework of legal and policy structures. However, leaders are watched, and those who have integrity to their stated goals merit trust which in turn makes employees happy.”
Manage Equitably
The authors cite examples from Finnish telecom company DNA, global insurance broker Aon, and toymaker Lego, where all employees “enjoy the company’s global synchronous ‘play days’ that reinforce the company’s commitment to core values of fun, imagination, and creativity.”
They add, “Each of these companies is enacting their corporate core values, while also reflecting the emphasis the countries and cultures they are based in place on trust, transparency, and support of workers at all levels.”
On a practical level, being “equitable” as a leader means treating all employees fairly. It’s not fair to work teams to saddle them with poor performers, but workers also want to see everyone who needs it given coaching and a reasonable chance to succeed.
The authors conclude, “Providing programs that serve the well-being (again, see above) of employees can generate a sense of trust between employee and employer through the simple recognition that everyone’s well-being matters.”
Deploy Constructive Candor
Small talk has its place in American culture—but apparently not so much in the Nordic countries, where being open, authentic, and straightforward (the opposite of passive-aggressive behavior) is the norm. Per Danko and Vroman:
“Finnish telecom company DNA has a foundational concept that it serves no one to withhold feedback that can improve a process or a relationship. When DNA’s executives routinely make the rounds to ask workers how things are going, it is more than a gesture.
“Similarly, at Lego, psychological safety is a goal for all employees. Employees are encouraged to speak up if they observe any issues or if they can recommend any innovations to improve a product or process.
“Candor is both founded on trust and strengthens it, while also being a core element of authentic leadership. Candor encourages innovation, fosters growth, and nurtures ethics and accountability.”
Candor doesn’t mean being cruel or having no filter, of course. It’s always important to choose one’s words wisely. But it does mean that leaders are straight with employees, and workers should feel (and be) free to speak up about their issues and concerns. Managers should “provide honest feedback” while workers feel a sense of “psychological safety.”
As the authors summarize this, “When workers feel like they know what is going on, that their well-being is formally on the company’s agenda, and that their voices are valued, and will not be retaliated against, they feel comfortable coming to work and doing their best. They will feel happy. Happier employees can make our companies more competitive and more successful.”
How Leadership Training Supports a Focus on Community and Trust
Many of today’s leaders, particularly in first-line and middle management, may not be prepared to effectively foster a workplace environment infused with a sense of community, trust, and candor. Fortunately, leadership training can help close this gap in several ways.
First, personality assessment workshops like Myers-Briggs Type Indicator (MBTI) Training and our DiSC Workshop along with Emotional Intelligence Training help managers better understand their own decision-making and communication styles as well as those of their team members, enabling them to guide employees more effectively and empathetically.
Next, training such as Manager’s Guide to Business Coaching helps supervisors communicate one-on-one with their direct reports in a more open and productive manner, increasing trust and performance.
Finally, programs like Igniting Team Performance® help leaders and their teams improve collaboration, goal-setting, and trust as they work through a series of progressively difficult challenges, with insightful debrief sessions at the completion of each level.
Final Thoughts on Employee Community, Well-Being, and Happiness
While goals like increasing employee engagement and building a high-performance corporate culture are certainly worthy, recent research suggests that leaders and their organizations would be better served by focusing on factors like fostering community and trust. These approaches will more effectively maximize employee well-being, happiness, creativity, and productivity.
Engagement is difficult to measure in the short term, and difficult to move the needle on even over the long term. Well-being is easier to monitor and impact, and it directly improves retention and productivity. It’s often as simple as making employees feel that their manager and coworkers care about them personally and appreciate them.
Culture is likewise important, as having a positive workplace culture correlates with higher average annual returns. But fostering community produces even better results over the long term, and reduces burnout as well as turnover. Focusing on community also improves psychological health, happiness, and well-being.
Professional development programs can help leaders more effectively address employee well-being, build a sense of community, and foster trust and candor which increase employee happiness. Team building programs not only provide a common set of core benefits (improving communication, collaboration, and problem-solving) but also support well-being, stronger relationships in the workplace community, and trust across functional groups.
